Nationwide Building Society has undercut Barclays by launching the lowest 10-year fixed-rate deal.
The lender is offering existing mortgage customers a 60 per cent LTV 10-year fix at 2.84 per cent while new customers are offered a rate of 2.94 per cent. The product has a £999 fee, reduced to £499 for first-time buyers. Remortgage borrowers are offered a free standard valuation and a choice between free standard legal services or £250 cashback.
The move follows Barclays’ launch of a 2.99 per cent 10-year fix earlier this month, which was then the lowest on record.
Nationwide director of mortgages and savings Richard Napier says: “There has been a growing trend of customers opting for longer-term fixed rates to ensure certainty of monthly mortgage payments, with the recently introduced 10-year fixed-rate mortgages proving a popular addition to the range.”
Nationwide has also cut rates across its 95 per cent LTV save-to-buy products, with rates starting at 4.44 per cent for a two-year fix.